TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 132

CODE 18-77

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Mr

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CONFIDENTIAL

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2

Mr Stewart

HONG KONG AND THE MFA

R

1. In a telephone conversation this morning, Steuart Webb- Johnson of the Hong Kong Government Office, who was generally optimistic about progress in Brussels, expressed concern about possible US reaction to any EEC/Hong Kong textile agree- ment which differed substantially from this year's US/Hong Kong agreement.

2. He was quite sure that, if any pressure were exerted by the US to renegotiate their agreement, the Hong Kong Government would ask for and expect considerable support from the UK. The Hong Kong argument will be along the lines that we are, at least partly, responsible for a tough EEC agreement and the consequent US reaction and must therefore accept our constitutional responsibility of protecting Hong Kong from further damage.

25 November 1977

cc: Mr Stern (EID(E)) Mr Tunnell (TRED) Miss Darling (NAD)

Shampan

J Thompson

Hong Kong & General Department

233 4377

K 245

Let us cross this widge when we come to it - I have always thought that the supposed threat of a US backlash

was one of the less plausible of Hong Kong's regotiating arguments-provided they are not seen to be caving in

too early

W. Chantill

28111

This is pretty vient jeel. H.K. have bacen potting found his agent for some months роніну

now

Jees

P.A

CONFIDENTIAL